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China Unicom Connect the World to Innovate and Share a Good Smart Living Contents 1 Build the “Five New” China Unicom Connect the World to Innovate and Share a Good Smart Living Contents 04 Message from Chairman 06 Welcome to China Unicom Feature Story I: 06 The Road of Reform and Opening Up Feature Story II: 07 Deepening the Mixed-Ownership Reform Feature Story III: 08 Further Implementing Targeted Poverty Reduction in an All-round Manner Feature Story IV: 11 Building Smart 2022 Winter Olympics 13 Feature Story V: Serving the “Belt & Road” Initiative 15 Corporate Culture 15 Development Strategies 75 Appendix 75 Key Performance 76 Company Honors 77 Institutions and Organizations Joined 77 Description of the Report 77 Indices 80 Feedback Contents 18 New Governance – Writing a 56 New Energy – Cultivating New Chapter in SOE Reform New Values for Innovative Development 18 Upholding the Leadership of Party Building in Guiding Development 56 Assisting in Building Smart Industries 20 Perfecting Corporate Governance 60 Developing Smart and Forward-Looking Structure Technologies 22 Compliance Operation and Responsibility Fulfillment 22 Sub-divided Unit Reform for Stimulating Vitality 26 New DNA – Strengthening New 64 New Ecology – Jointly Promoting Foundation for Transformation Inner-Outer Interconnected New and Development Development 26 Injecting Excellent Internet DNA 64 Joining in Hands with Business Partners 26 Creating a New Pattern of Talent Supply for Common Development 27 Establishing a New Incentive and 64 Win-Win Cooperation with Industry to Constraint Mechanism Write a New Chapter 27 Supporting Employees’ Sustainable 66 Deepening Cooperation with Internet Development Companies 34 New Operation – Starting 70 Enhancing Management – Internet-based New Reform Regulating and Fulfilling Social 34 Constructing Smart Premium Network Responsibilities 36 Enriching Smart Applications 70 Responsibility Strategy 38 Improving Smart Services 71 Responsibility Organization 41 Safeguarding Cybersecurity 72 Responsibility System 43 Sticking to Green and Low-Carbon 73 Responsibility Assuming Capability Development 73 Responsibility Participation 48 Promoting Charitable Undertakings to Share Benefits with the People China Unicom 2018 Social Responsibility Report Message from Chairman The year 2018 was the first year of putting into practice Xi Jinping Thought on Socialism with Chinese Characteristics 04 for a New Era and the spirits of the 19th CPC National Congress, marked the 40th anniversary of the reform and opening up, and was also a year during which China Unicom 05 achieved outstanding results in development and reform with noticeable improvement in corporate appearance. We followed the new development philosophies, led high-quality development with high-quality Party building work, and further implemented the Strategy of Focus, Innovation and Cooperation to fully promote the building of the “Five New” China Unicom. We proactively advanced Internet-oriented operation transformation, while comprehensively deepening the mixed-ownership reform. We facilitated the Three Critical Battles (forestalling and defusing major risks, carrying out targeted poverty alleviation, and preventing and controlling pollution), strived to be a model in sustainable development by fulfilling our responsibilities in politics, economy, society, environment and overseas development, and made new contributions to satisfying people’s increasing demand for information life and leading beautiful smart life. Explored New Governance to unleash more institutional benefits. We persevered in taking sustainable development and maximization of comprehensive values as the core, deepened the mixed-ownership reform, and made systematic, holistic and reconstruction-oriented optimization and adjustments, with the aim to push forward the modernization of both the governance system and capability. We strengthened the leadership of Party building work, put into practice the “Two Full Implementation” requirements, and organized a new diversified board of directors. We leveraged ample incentives to drive the vitality of micro- entity in a normalized and overall way, fully drove the sub- divided unit reform, as well as optimized and streamlined the organizational structure. As a result, the number of legal- person entities have been reduced by 26 in two years. For vitality stimulation, we elected 20,000 “small CEOs”. Their revenue grew in parallel with the value they created, and their sense of gain increased greatly. A pilot project of “contracted operation with private investment” was carried out among the secondary companies with serious loss, and China Unicom’s Yunnan branch company was elected into the “Dual Hundred Action” program for state-owned enterprises (SOEs) reform. We shoulder an important responsibility and mission of exploring and building a modern SOE system with Chinese characteristics. Developed strong New DNA to activate greater internal vibrancy. We have established a concept of “strong talents and good DNA for corporate prosperous development”, and kept improving the building of corporate culture and enhancing the critical element of talents. We carried forward the spirits of model workers and craftsmanship by commending 100 Group-level model workers and elected 104 and “China Unicom Technical Experts”. Corporate culture publicity has become normal to consolidate the root of corporate prosperity and raise up the spiritual spine of China Unicom. A separate talent management system has been established. industrial manufacturing and other main industries, we have provided We implemented a “418” talent project, and the innovative talents grew diversified “smart +” applications to promote the in-depth integration to 16,000 through the three programs of “U Talents”, “Talents Hunting” of information technologies and the real economy, and facilitate the and “Running Water”. We cared about employees’ living, respected transformation and upgrading of traditional industries, economy and and protected their legal rights and interests, pushed forward the salary society. We have been building a special innovation zone to speed up 05 and reward distribution to incline to the front-line employees and the the shifting between the old and new driving forces, comprehensively value creation field, as well as helped solve employees’ difficulties. As a improve the mid-to-high-end supply ability in the innovative business result, their sense of ownership and happiness increased continuously. field, and serve economic and social development. Promoted New Operation to achieve better efficiency and returns. Built a New Ecology to put together greater synergetic advantages We have earnestly implemented the cyber power strategy to promote for win-win results. We have been practising the philosophy of “win- the development of Digital China; fully driven the four Internet-oriented win cooperation for synergetic development” by building cooperative development of marketing, IT, network and management, and been ecological circles and a community of development. We built an committed to building new-generation information infrastructure that ecological circle on in-depth cooperation with strategic investors, is high-speed, ubiquitous, safe, environment-friendly and benefitting made customer touchpoint cooperation with 54 Internet companies, people, to enable the public to enjoy faster, broader, better and and established three joint ventures, namely Yunlizhihui Technology, cheaper smart network services. Digital gap has been narrowed Yunjing Wenlv Technology, and Yunjizhihui Technology, respectively down with the deepened implementation of information universal with Alibaba, Tencent and Wangsu to deepen capital cooperation. We service. As we further implemented the requirement of providing built a cooperative ecological circle on IoT “platform +”, established faster and more affordable network, our 4G network speed has led an IoT industry alliance, set up an innovation acceleration center and the industry, the household broadband speed has been faster and an incubation lab. We built a terminal cooperation ecological circle to faster, and the roaming fee for mobile data traffic nationwide has been keep expanding cooperation on six-mode all-network terminals. We canceled. The mobile data traffic tariff has been reduced by 59%, the built a 5G cooperation ecological circle, and formed a 5G innovation household broadband tariff has been cut down by 41%, the unit price center to deepen innovation cooperation with vertical industries, and per bandwidth of the Internet private line for SMEs has declined by strengthen external cooperation relying on the platform of the 2022 36%, and the international voice and data roaming fees have been Winter Olympics. We also built a cooperation ecological circle for social down by 44% and 46% respectively, giving the benefits to people. capitals to enhance the co-building, sharing and cooperation with peer We exerted efforts to build smart brands, kept improving customer companies, reduce repeated construction and waste of economic and service and experience, innovated a 2I2C application and privilege social resources, and form a synergetic development effect. system, and diversified our “Smart WO” integrated products, so as to Pursue new targets and make greater efforts in a new era. The enable the public to enjoy a more convenient, colourful and intelligent year 2019 marks the 70th anniversary of the founding of the People’s life. We committed ourselves to the battle against poverty, fulfilled Republic of China, and is a critical year for
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